Some of my friends who are middle class wanted to start a business. Something they must start they say. Even I used to say the same to them. I used to say if we have a bonda shop, only 1 out of 10 people will complain for the sake of complaining, but in I.T because we normally work under highly ignorant and skill less people we get a lot of complaints even before we finish anything.

Some of my friends bravely attempted o start ventures, but fortunately we asked them to spread sheet stuff, and here is what we found. It takes Rs 40 Lakhs to set up a small business, say a store or take away or some thing. It would take about 6 months to 2 years for Return of Investment (ROI), so these are the conditions to start a business.

The first is you must not have any other loan, yes, once you started a business depending on competition you might need to sink in more money, so you must not have any other loan, else you could have burden upon burden that will crush you. The second criteria is you must not get money from any other person to start a business. You are starting a business because there is a purpose for it, and you need autonomy to run it. Having friends, relatives and so on will rob that autonomy until and unless one of you is the leader and all others are dumb. Or you must get involved in unnecessary fights spoiling your tranquility.

In India now, loans are not so expensive, but if you don’t pay them back then your life is gone 100%, it will be recorded and none will give finance. Since facebook is involved in financial prediction, possibly your kid and your friends will also be flagged red and orange and they won’t get a loan too. So loan is ruled out.

So how to generate that 40 lakhs? Simple, have a savings of 10 crores in an interest giving scheme, this will generate 5 Lakhs of interest, of that you will get 3 lakhs per month after tax. Live frugally and in a bank account accumulate 40 Lakhs in 2 years, that will serve the base for business of full independence. Since you are getting 3 Lakhs after tax just like that, even if the business jitters you will have something to sink in to keep the business is afloat provided your wife, kids, relatives and friends don’t drain your money.

You might say that you will never get 10 crores in life, then shut up, increase your skill, and earn with that skill and die with dignity if possible. That’s what India is right now. as a middle class this nation does not give you a second chance.

If this blog looks really pessimistic then re-read the title.